Where Buy-to-let is Either a Wonderful Investment or a Rip-off for Renters in Britain
Without a doubt there is a housing supply crisis in the UK and tenants are being hit hard as the rent keeps rising. However, while the crisis is widespread, there are a number of places across the UK where letting is most expensive.
Across the United Kingdom, Guernsey is probably the most expensive place for renters because renting a room in a shared flat or house on the island is way too high considering there are active construction restrictions. The property shortage has made the island one of the most expensive places to live for any renter.
The serious housing shortage across Great Britain was caused by 2014’s house prices increase and has been driving the room rents up in many cities and popular areas according to a rental index released.
The research ascertained that while Guernsey topped Great Britain when it came to the most expensive at a monthly rent of £737.1 in 2014, the English Capital following closely at £651, perhaps after the rent prices went up by 6.2% between 2012 and 2014.
Apart from the fact that Guernsey has construction restrictions that have led to house to rent shortage, analysts also believe the fact that lots of homes in the island are mostly holiday lets, which has also compounded the problem.
In London, increasing house prices and high demand has made lots of people to stick to renting a place to live in contrast with owning one. In fact, for every room in London, there were ten tenants competing for it in 2014 in contrast with six tenants competing for a room back in 2012.
The rental prices are so high that when a flat in Mayfair was put up for rent, whose size was that of a mere bathroom, it was taken in less than 40 minutes of entering the market. To secure the 301 square feet flat, the female tenant parted with an advance payment of £10,000 even before viewing the room in advance and moved in later after two hours.
London attracts all kinds of people globally and whilst this has been lucrative for the capital, the housing supply on the ground has not been able to keep up with the housing demand. Essentially, the cultural change from buying property to renting has completely shifted and now those living in London are some of the most flat-sharing people across the UK.
Guernsey is closely followed by London as the most expensive place to rent a room followed by Woking, Reigate & Banstead, Mole Valley, Oxford, Brentwood, Watford, Guildford, Cambridge, North Surrey, Tandridge, Horsham, Maidenhead, Tunbridge, Wells, St Albans, Grays, Brighton & Hove, Whitney and Bishop’s Stortford. Guernsey is the highest at £737.1 rent room per month and Bishop’s Stortford is among the lowest at £438.5.
In Edinburgh, every room available for rent is being sought by about 13 potential tenants while Glasgow’s rate stands at 12 people for a single available room.
At the same time, most of the people sharing flats across Great Britain are professionals at 57 percent and students at 22 percent even as retirees are not even 1 percent.